Speciality Coffee

While the industry has experienced a general resurgence (it is second only to oil in terms of dollars traded worldwide in the commodities market with Americans consuming 300 million cups daily), this business area has especially experienced a huge boom in the last decade.

The Specialty Coffee Association of America has reported an increase of retail operating units in the United States from 8,400 in 1997 to 17,400 by the end of 2003. Nearly 50% of Americans were drinking espressos, cappuccinos and other forms of specialty drinks in 1998. A National Coffee Association Annual Drinking Trends Study shows that occasional consumption has remained around 56% while daily consumption has moved up from 9% in 2000 to 16% in 2004.

Specialty coffee can refer to several categories ranging from single source, premium, flavored, gourmet, shade grown, organic bird friendly, and fair trade. Often these categories overlap and can include both organic and shade grown for instance. Detailed information is necessary for certification of specific types including the exact locations of fincas (farms), cooperatives and mills; environmental and climatic data including altitude where grown; socioeconomic conditions, processes for production and milling; general marketing information; and a list of materials and inputs used in production. Since the certification process is lengthy and costly not all producers bother. However, while premium grades and varieties in general command better market prices than traditional brands, certified beans receive the top dollar. Consumers generally want to be assured that the product actually is what it claims to be.

The best known regions for single source varieties are Kona and Jamaica Blue Mountain, which are followed by Kenya, Ethiopia, and Guatemala. Costa Rica and Colombia remain established classics while Papua New Guinea is a favorite among the insider crowd. Emerging single origin countries include Rwanda, Ecuador, Bolivia and Peru. Many of these nations are receiving assistance from agencies such as the United States Agency for International Development (USAID) to develop marketing strategies to help farmers in chronically impoverished regions.

One such program is the GeoCafe project systems through which the United States Geological Survey (USGS) assists Latin American and African producers competing in the premium market through development of ArcIMS software-based marketing and certification systems. USAID provides funding for this program which integrates all the raw data about the farms, cooperatives and processing facilities into databases referenced to digital maps containing information about protected areas, topography, hydrology, forest cover, and local population centers. These high tech innovations combined with the internet greatly improve verification and allow traders to locate cooperatives in specific regions much more easily in order to obtain samples.

Flavored coffee is a special variety that has gained popularity and even created some controversy in recent years, but it is not a new concept. The Arabs were the first to alter the beverage's taste by adding cinnamon. Others in the Middle East followed adding cardamom, clove or nutmeg. Eventually people experimented with citrus peels, chocolate and alcoholic beverages as well. All of these flavorings are added during the brewing process or in the cup. In modern times chemical solvents which mimic natural flavors have been developed and are now commonly used in an infusion process for commercial sales. In addition various natural oils and nuts are also infused with the whole beans while still warm from roasting.

Single source is one of the better known categories and refers to beans from a specific location. True single source beans (also known as single origin) come from one estate (farm) rather than just a specific country or region within a country and its origin can be certified. While a blend doesn't qualify as single origin even if from the same area, it can still be a gourmet coffee if it produces a unique taste.

Certified organic, which means no chemical pesticides, fungicides, herbicides nor fertilizers were used in the production process, is also in high demand. Quality Assurance International is one of the organizations that certifies organic beans under USDA guidelines. The premium price it commands ensures a stable monetary return for workers and producers.

Bird friendly refers to shade grown plants which provides important habitat for migratory birds. Many plantations have converted to full sun fields, which can produce more beans more cheaply, in order to compete in a world market flooded with low quality, inexpensive beans. However, full sun fields take a heavy environmental toll further shrinking natural habitat for migratory songbirds and other wildlife. One project responding to this threat is sponsored by the National Wildlife Federation which has teamed up with Green Mountain Coffee Roasters to develop special blends from certified organic, shade grown farms.

Certified Fair Trade ensures that farmers, who are small holders, receive a fair price reflecting a sustainable living wage. While the world market for commercial grade green beans has dropped to around $.60/pound, the retail prices have remained high. Fair Trade helps small farmers to share in the boom by requiring a minimum price of $1.26/pound. It also helps the environment because small farmers generally continue traditional practices of shade growing and can't afford the chemical pesticides often times used by large plantations. In order to be Fair Trade certified an importer must meet stringent international criteria including providing credit to farmers and providing technical assistance such as transitioning to organic farming.

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